The Taxonomy file is important for the Swedish business community and is followed closely by the Confederation of Swedish Enterprise. The work with criteria for the environmental objectives is currently in an early stage, and in this position paper we highlight our initial key messages.
First, sustainable growth will be crucial in delivering the green transition. The Confederation of Swedish Enterprise is in favour of initiatives that support investments contributing to sustainable development. The importance of promoting circular solutions and increased resource efficiency in achieving this societal transformation cannot be emphasised strongly enough.
In order to be able to reach its goals, the business community must be part of the process. Otherwise, there is a risk that the legitimacy of the regulatory framework - and the real environmental and climate benefits that it could bring - could be further damaged.
Linked to this, it is also essential that the benefits of any information requirements - and the impact of reporting them - outweigh the costs of collection. Red tape should be cut as part of the process. There should also be an impact assessment made of the administrative implications (cost, time) for an operator to report on all six of the objectives set out in the Taxonomy.
Swedish Enterprise stresses that the Taxonomy must promote innovation, stimulate new technologies and encourage investments in transformation. A fossil-free energy supply will be vital in achieving the green transition, and we are concerned that there is a risk that fossil-free power sources - which together account for almost 80% of current Swedish electricity production - could be classified as unsustainable in the Taxonomy.
From a Swedish perspective, there is a considerable risk that the Taxonomy contributes to Swedish climate-smart production being viewed as somehow less green. As a consequence, there is a risk that those companies and industries that rely on Sweden’s virtually fossil-free electricity mix for their production may in turn be perceived as less sustainable. As a result, large parts of Swedish industry and the ICT sector would lose part of what has been a competitive advantage over their international competitors. This could result in increased emissions globally.
EUTaxonomi